The Federal Reserve reduced the federal funds rate by 0.25 percentage points, impacting borrowing costs in the hotel industry. The Federal Reserve has reduced the federal funds rate by 25 basis points, setting the new target range at 4% to 4.25%. In the hotel industry, the rate cut is expected to have a limited immediate impact on commercial real estate lending. Federal Reserve Chairman Jerome Powell noted a slowdown in consumer spending and a moderate increase in business investment. The Federal Reserve projects a gradual decrease in the federal funds rate over the next few years, with expectations of inflation easing in the longer term.